The Short Report: October 16, 2024

GOVERNMENT FUNDING

 Natural Resources Canada (NRCan) announced up to $500 million for the Smart Renewables and Electrification Pathways Program (SREPs) Utility Support Stream. SREPs was recapitalized with nearly $2.9 billion in Budget 2023 and supports clean electricity infrastructure – such as renewable energy technologies, energy storage and grid modernization technologies – that strengthen the electricity grid. The Request for Expressions of Interest for the Utility Support Stream (USS) is now open to utilities, system operators and industry organizations seeking to modernize to enable greater renewable energy integration or expand transmission and distribution systems, while maintaining reliability and affordability. Projects funded under the USS will: 

• improve the utilization and efficiency of existing assets.
• increase the reliability, resiliency and flexibility of the power system.
• increase the integration and use of renewable resources and non-conventional infrastructure solutions.
• generate economic and social benefits.
• help accommodate growing demand for clean and affordable electricity.

More intake processes for other types of projects will be launched over the next few months. NRCan

Health Canada announced an investment of $37.6 million over five years, through the Canadian Institutes of Health Research (CIHR), for the renewal of the Network Environments for Indigenous Health Research (NEIHR). Across the country, NEIHRs bring together researchers, Indigenous leaders and community members to support community-based and scientifically rigorous health research grounded in Indigenous ways of knowing. The NEIHRs are headed by leaders and scholars from institutions and organizations that include: Dalhousie University, the Institute of Circumpolar Health Research, McGill University, Qaujigiartiit Health Research Centre, University of Calgary, University of Manitoba, University of Saskatchewan, University of Toronto, and University of Victoria. These networks work to address significant health disparities and train and mentor the next generation of First Nations, Inuit and Métis health researchers. This continued investment supports the nine established NEIHR centres in their work, assists the NEIHR National Coordinating Centre (led by researchers from the University of Saskatchewan and McMaster University), and will also expand the program into the Yukon – meaning this program is now operating in every region of the country. CIHR

The Treasury Board of Canada Secretariat announced the federal government’s commitment to purchase carbon dioxide removal (CDR) services as part of the Greening Government Strategy. Ottawa will purchase at least $10 million in CDR services between now and 2030 to help reach its goal of net-zero emissions in government operations by 2050. The Greening Government Strategy commits the federal government to reducing its operational emissions to as close to zero as possible and then balance out any remaining emissions with an equivalent amount of carbon dioxide removal. Ottawa said this investment will enable the government to lower its emissions while supporting the development of these critical CDR technologies and markets. Treasury Board of Canada Secretariat

Innovation, Science and Economic Development Canada (ISED) announced a $17.5-million investment, through the Strategic Innovation Fund, in Ottawa-based Giatec Scientific Inc. This investment will support the company’s $65.8-million project to develop sensor technologies using artificial intelligence to optimize concrete mixtures, resulting in a reduced carbon footprint while improving the quality of building materials used for Canadian infrastructure. With this investment, Giatec will develop a “smart” concrete demonstration plant, based in Ottawa, which will operate using its new SmartMix™ technological innovation, for companies and universities to advance innovation in the construction ecosystem. NRCan

Natural Resources Canada (NRCan) announced up to $13.8 million, pending final due diligence by NRCan, for five critical minerals infrastructure developments in Northwestern Ontario. This funding would be provided through the Critical Minerals Infrastructure Fund (CMIF). This investment would include:

• $5.5 million to Green TM Resources Canada Ltd., to upgrade 56 kilometres of existing roads and replace three bridges to support the development of a lithium mine near Armstrong, Ont., and bypass residential communities.  
• $1.4 million to Rock Tech Lithium Inc., to upgrade and extend a 10-kilometre access road north of Nipigon, Ont., that would enable the transportation of lithium from the company's Georgia Lake Project mine site, an open pit and underground mine.
• $6.1 million to Frontier Lithium Inc., to advance Indigenous engagement and engineering for a 56-kilometre all-season road and electricity infrastructure for the Pakeagama Lithium Project in Northwestern Ontario.
• $771,100 to Generation PGM Inc., to undertake engineering and design work for a five-kilometre access road, as well as feasibility studies for additional road and rail links to support the movement of copper concentrates from its Marathon Project to smelters and refiners.

The CMIF is a key program under the Canadian Critical Minerals Strategy to address infrastructure gaps, enable critical minerals production and connect resources to markets through various clean energy, electrification and transportation infrastructure projects. NRCan

Natural Resources Canada (NRCan) announced up to $8.4 million in conditionally approved funding provided through the Critical Minerals Infrastructure Fund (CMIF), pending final due diligence by NRCan, for five critical mineral infrastructure development projects in the Sudbury and Timmins regions. This investment would include:

• Up to $6.8 million for Canada Nickel Company's Crawford Nickel Sulphide Project to inform the mine’s electrification and connection to the Ontario electricity grid. This includes:

• Up to $2.4 million for Transmission Infrastructure Partnerships 1 Limited to advance a transmission line connecting the Crawford Nickel Sulphide Project to the Ontario power grid.
• Up to $4.4 million for Canada Nickel Company Ltd. to conduct studies to inform the Crawford Nickel Sulphide Project’s electrification plan. When in production, the project is expected to reduce greenhouse gas emissions by 60 percent compared with diesel-powered operations. 

• Up to $1.6 million for Magna Mining Inc. to support pre-construction activities to help power the Shakespeare and Crean Hill mines, which produce nickel and copper, with clean electricity and connect the Shakespeare mine to the Ontario highway system.

Also, with $2.7 million from NRCan, Giyak Mishkawzid Shkagmikwe Inc. and Taighwenini Technical Services Corporation, the economic development corporations of Atikameksheng Anishnawbek and Wahnapitae First Nation, respectively, will purchase two production mining drills. These drills will be leased out to support First Nations training opportunities, wealth generation and participation in the clean economy. This purchase will help Indigenous partners participate in the revitalization at Vale’s Stobie mine, which is a nearly $1-billion joint project of Vale, Thiess, United Steel Workers and local First Nations, to produce more nickel and copper. NRCan

Natural Resources Canada (NRCan) announced more than $5.1 million for 16 projects in the critical minerals sector, as part of the Canadian Critical Minerals Strategy, to position Canada as the world’s reliable supplier of choice of critical minerals. This funding is provided through two key programs to increase the supply of responsibly sourced critical minerals and support the development of domestic and global value chains for the green and digital economy. This investment includes:

• Critical Minerals Geoscience Data Initiative: over $4.1 million to support 10 projects to enhance access to important data and generate new insights on the geological potential of critical mineral sources.
• Global Partnerships Initiative: close to $1 million to support six projects that will reinforce Canada’s growing number of bilateral commitments and engagements in the critical minerals space. NRCan

The Government of Ontario is investing $5 million in the Racialized and Indigenous Supports for Entrepreneurs (RAISE) program for 2024-25 to help eliminate barriers faced by Indigenous, Black and other racialized entrepreneurs who want to start or grow their businesses. This is part of the government’s $15-million investment over three years to provide more than 1,200 entrepreneurs with the training and support to launch and grow successful small businesses. The government is now accepting applications for the 2024-25 intake, which will provide eligible entrepreneurs with free online business development training, culturally responsive coaching, networking supports and a one-time grant of $10,000. Interested entrepreneurs can learn more about the program and apply here. Applications close on October 30, 2024. Since its launch in 2022, the government has supported more than 900 Indigenous, Black and racialized entrepreneurs to build the skills they need to succeed. Govt. of Ontario

Pacific Economic Development Canada (PacifiCan) announced a total of $4.7 million, through the Business Scale-up and Productivity Program, for two companies in Richmond, B.C. Ideon Technologies Inc. will receive $2.7 million to commercialize their subsurface intelligence system, which allows mining exploration companies to identify, map, characterize and monitor geological features beneath the Earth’s surface with high accuracy. Ideon’s technology minimizes environmental impact by reducing the amount of drilling and invasive activity usually required to understand mineral deposits, voids and other geological features deep underground. Lucid Vision Labs, Inc. will receive $2 million to increase sales and manufacturing capacity for their machine vision cameras. Machine vision cameras play a crucial role by providing real-time feedback to automated systems that allows these systems to optimize their work. With this funding, Lucid will purchase cutting-edge equipment that will increase the company’s productivity and expand production. PacifiCan

The Atlantic Canada Opportunities Agency (ACOA) announced more than $4 million for 10 young companies in tech and life sciences to grow their businesses, create jobs and contribute to a diversified regional economy. The funding recipients are: Milk Moovement Inc., MIMOSA Diagnostics Inc., UpBeing Inc., Peer Ledger Inc., Swiftsure Innovations Inc., Krava Inc. (operating as Easy Platter), Rafflebox Technologies Inc., Startup Metrics Inc. (operating as SUMS Capital), Talkatoo Inc., and Shoelace Learning. These investments will help the companies grow their workforces, streamline operations, scale-up production, reach new markets, expand and commercialize. ACOA

RESEARCH, TECH NEWS & COLLABORATION

Times Higher Education released its World University Rankings 2025, evaluating 2,092 universities from 115 countries based on teaching, research environment, research quality, international outlook and industry. Eight Canadian institutions ranked in the top 200 this year: University of Toronto (#21); University of British Columbia (#41); McGill University (#45); McMaster University (#116), tied with University of Alberta (#116); l’Université de Montréal (#125), University of Waterloo (#163), and University of Ottawa (#191). Phil Baty, Times Higher Education’s chief global affairs officer, said while Canada has some of the world’s best universities, “the continued fall of a significant number of Canadian universities is a cause for concern.” CTV News reported that of the 33 Canadian institutions ranked, only two improved and more than 40 percent of Canadian universities have declined in ranking compared with the previous year. Declines were attributed to lower teaching and research reputation scores. Baty noted that the federal government’s “drastic cut in the number of student visas” could also be causing the decline. “Alongside the existing downward pressure on ranking positions amid growing global competition comes the introduction of restrictions and caps on the number of international students, which is driving a significant drop in international student recruitment,” Baty said. Times Higher Education

Maclean’s magazine released its University Rankings for 2025, which evaluate the performance of Canadian institutions in five areas: students, faculty, resources, student support and reputation. The results are grouped into three lists: Best Medical Doctoral Universities, Best Primarily Undergraduate Universities, and Best Comprehensive Universities. The top five Medical Doctoral Universities were McGill University, University of Toronto, University of British Columbia (UBC), McMaster University, and University of Ottawa. Leading the list for Primarily Undergraduate Universities were Mount Allison University, University of Northern British Columbia, Saint Mary’s University, Acadia University, and Lakehead University. In the Comprehensive category, Simon Fraser University, University of Victoria, University of Waterloo, Carleton University, and York University ranked the highest. University of Toronto ranked #1 in Best Overall university, Highest Quality, Most Innovative and Leaders of Tomorrow categories. UBC ranked #2 in Best Overall and in Leaders of Tomorrow. Maclean’s

The magazines Inc. and Fast Company released a new ranking of the top 50 institutions transforming entrepreneurship. The Ignition Schools list evaluates 900 academic institutions worldwide, highlighting those with the greatest impact on business and innovation. It assesses how institutions foster new technologies and support individuals and companies that bring them to market. Five Canadian institutions made the international top 50 list: University of Toronto (#13); McGill University (#20); University of Waterloo (#25); University of British Columbia (#34); and Queen’s University (#50). Fast Company

CIFAR and Mila-Quebec’s AI Institute have established the AI Insights for Policymakers program, a platform for policymakers and scientists to have timely and meaningful interactions to inform their thinking around AI and policy. The aim is to bolster evidence-based policies across Canada by enabling policymakers to tap into the breadth and depth of the Canadian AI ecosystem’s knowledge. CIFAR recruited a diverse group of 10 AI experts with wide-ranging expertise, led by two co-chairs: Nidhi Hegde, Canada CIFAR AI Chair and fellow at the Edmonton-based Amii national AI institute, and Blake Richards, Canada CIFAR AI Chair and core academic member at Mila, which is also a national AI institute. The primary mandate of the expert group is to provide targeted technical and socio-technical advice. They will provide advice and relevant knowledge to policymakers at all levels of government on specific challenges. Additionally, the group will draw on experts in the broader Canadian AI ecosystem on a timely basis. The initiative is led by a secretariat based out of Mila and CIFAR, with guidance from an advisory committee and the two co-chairs who provide strategic leadership. CIFAR

The Canadian Nuclear Safety Commission (CNSC) decided to amend the licence held by Ontario Power Generation Inc. (OPG) for the Pickering Nuclear Generating Station (PNGS). This decision authorizes OPG to operate Units 5-8 at the PNGS until December 31, 2026, up to a maximum of 305,000 equivalent full power hours. OPG was previously authorized to operate Units 5-8 at the PNGS until December 31, 2024, up to a maximum of 295,000 equivalent full power hours. The amended licence includes a new condition requiring OPG to implement and maintain an enhanced fitness-for-service program. In making its decision, the CNSC considered submissions from OPG, CNSC staff and 54 intervenors during a public hearing in Pickering in June 2024. The detailed reasons for the CNSC’s decision, including the Commission’s assessment of all submissions made in relation to the application, will be provided in a detailed record of decision at a later date. Both documents will also be posted in both official languages on the CNSC website. The PNGS comprises two reactor facilities, which include eight CANDU reactor units and their associated equipment. Units 5-8 began operating between 1983 and 1986. CNSC

Westinghouse Electric Company and Seaspan ULC announced a memorandum of understanding to support nuclear new-build projects in Canada and around the world. Under the agreement, Seaspan has the potential to manufacture key Westinghouse AP1000® and AP300™ reactor components, including pipe spools and steel structures. Seaspan has three shipyards in British Columbia and a dedicated workforce of 4,000 employees, which the company said aligns well with the requirements of large-scale capital projects such as the AP1000 and AP300 reactors. The Westinghouse nuclear business is owned by Toronto-based Brookfield and Saskatchewan uranium miner Cameco, and is competing with AtkinsRéalis to build new power plants in Canada. Westinghouse

The Toronto Transit Commission (TTC) unveiled two battery-electric buses, the first of 340 battery-electric buses that are expected to join the transit agency's fleet by the end of 2026. The buses are a result of a joint $700-million investment, announced last year, by the City of Toronto and the Government of Canada. Once all 340 vehicles are received, the TTC will have a total eBus fleet of 400 – by far the largest in North America. The funding also supports upgrades to install chargers and related infrastructure in seven bus garages. The TTC continues to work towards electrifying its entire operations by 2040. TTC

Anjou, Que.-based Lithion Technologies was selected by Hyundai Auto Canada Corp., the Canadian subsidiary of the South Korean multinational automotive manufacturer, as its primary and official partner for collecting electric vehicle batteries and modules for recycling. This multi-year agreement follows an initial agreement between the two companies signed in 2021, aimed at validating Lithion's unique extraction solution technology that recovers 98 percent of the minerals contained in batteries. Lithion will play a pivotal role, with more than 250 Hyundai and Genesis dealers/distributors across Canada, in supporting Hyundai's corporate vision and efforts to collect and recycle their lithium-ion vehicle batteries. Lithion recently inaugurated a recycling plant, Lithion Saint-Bruno, in the greater Montreal area. Lithion Technologies

Mercedes-Benz and the Government of Ontario, through the Ontario Vehicle Innovation Network (OVIN), are establishing three incubators in Windsor, Kitchener-Waterloo and Toronto to foster startup creation, startup scouting and automotive innovation in Ontario. The OVIN Incubators Program will focus on identifying and fostering innovation in future software and AI, future vehicle components and future electric drive. Working with startups, and in partnership with OVIN, Mercedes-Benz will help advance promising projects through the provision of the company's specialist expertise and use cases. Selected projects will also benefit from the international Mercedes-Benz STARTUP AUTOBAHN network. Separately, the company signed a memorandum of understanding with the University of Waterloo to collaborate on research, with a focus on neuromorphic computing (which mimics the functionality of the human brain) for automated driving applications. Mercedes-Benz

The Government of Alberta is proposing additional restrictions on wind and solar farms that it maintains are designed with environmental protection in mind, CBC News reported. Last year, the Alberta government imposed a seven-month moratorium on new renewable energy projects, after which Premier Danielle Smith announced her government would be taking an "agriculture first" approach to regulating renewable energy project locations. That approach includes preventing renewable energy projects from being within 35 kilometres of "pristine viewscapes" and parks and protected areas, and a near total ban where soil conditions are prime for yielding crops. In February, Smith also said the government was planning to go beyond viewscapes and cropland, and would consider imposing further restrictions related to Alberta's native grassland areas and irrigated and irrigable land. A first look at what those restrictions could be was made available when the government asked some municipalities, industry officials and landowners for input this summer. According to a webinar used in that engagement process, the government is looking to prohibit wind and solar farms on irrigated land. Land that could be irrigable could also be prohibited, though an analysis would be done before a decision is made. The same webinar also shows Alberta is considering prohibiting renewable energy facilities from being erected on most grassland areas. Ruiping Luo, conservationist with the Alberta Wilderness Association (AWA), calculated in a report last month that these new potential restrictions, on top of those announced by Smith earlier this year, could rule out almost 40 per cent of the province for renewable energy. The AWA and the Pembina Institute both said if Alberta wants to protect grasslands and agriculture lands, then restrictions like these should be applied across the energy sector, rather than solely on renewables. Oil and gas extraction in southeast Alberta has a much more detrimental effect on Prairie grasslands than solar or wind energy  projects, Luo said. CBC News

The City of Vaughan has partnered with Mackenzie Health, York University, and ventureLAB to develop a destination for healthcare innovation called the Vaughan Healthcare Centre Precinct (VHCP). Already home to Cortellucci Vaughan Hospital – Canada’s first smart hospital – the VHCP will convene partners across the health care sector to produce the next generation of health care practices, research, talent, and technology. The 82-acre site, less than 30 minutes from Toronto’s downtown core, also will be home to York University’s forthcoming medical school, which will focus on training the next generation of primary care physicians and is expected to become operational in 2028. York University has 11 health-related faculties. Researchers from these faculties play an important role in leading new discoveries and generating intellectual property that can later be brought to market by entrepreneurs. Emerging startups can accelerate their path to commercialization by collaborating with world-class health care partners in Vaughan’s ecosystem. Key partners include Sterling Industries, a contract manufacturer specializing in medical devices, which hosts ventureLAB’s Hardware Catalyst Initiative Lab where innovators can test and validate their medical devices. Another partner is Able Innovations, a robotic medical device startup. BetaKit

Development of clean hydrogen fuel production capacity and the infrastructure used to distribute hydrogen has slowed and is years behind where it was supposed to be, according to Randy MacEwan, CEO of Vancouver-based Ballard Power Systems. Ballard has announced it will slash its annual operating expenses by 30 percent and make huge job cuts. The company is pushing back its intentions to build a three-gigawatt hydrogen fuel cell and components manufacturing plant in Texas and stopping its entire Chinese expansion program. “In the context of a challenging macroeconomic and geopolitical outlook and amid protracted policy uncertainty, we see a multi-year push-out of the availability of low-cost, low carbon hydrogen and hydrogen refueling infrastructure,” MacEwen said in a recent statement. Ballard, which received $94 million in grants from the U.S. government for the company’s planned facility in Texas, is looking into a financing timeline extension to maintain its eligibility for the grant money. Ballard’s Chinese strategy started in 2018, when Weichai Power, a Chinese auto parts and powertrain company, took a nearly 20-percent stake in Ballard for $163 million, on top of a $90-million technology transfer. That deal resulted in a joint venture meant to bring Ballard’s hydrogen fuel cell technology into the Chinese market. However, MacEwan said that  the venture has been underperforming, contributing to the “continuing challenges in the China fuel cell market.” Hydrogen Fuel News

Orders for factory robots in North America fell by nearly one-third last year from 2022's record volume, according to the Michigan-based Association for Advancing Automation (A3), a trade group for the robotics industry. For the first half of 2024, 15,705 robots valued at $983 million were ordered, marking a 7.9-percent decline in units and a 6.8-percent drop in revenue year-over-year. Automation equipment attracted heavy investment after the COVID-19 pandemic left many factory jobs unstaffed and hard to fill, between high absenteeism and workers seeking better pay or less physically demanding roles. Supply chain bottlenecks further drove demand as companies looked for ways to accelerate production when parts and materials became available, A3 said. However, some companies that bought robots during the pandemic-driven labor crunch underestimated the maintenance and programming skill needed to deploy them to more complicated tasks. High interest rates and lower production volumes mean it is taking companies longer to recoup the money spent on robots. The automotive industry is the largest user of industrial robots in North America, but the sector's second-quarter orders for robots dropped 20 percent from the same period last year, A3 said. A3

VC, PRIVATE INVESTMENT & ACQUISITIONS

Ax-C, a new Montreal-based hub for innovative entrepreneurship set to open in 2025, announced a multi-year partnership with Bell, Google, Desjardins, and the Fonds de solidarité FTQ, representing a combined financial contribution of $5.25 million. This strategic private sector partnership will build a strong and dynamic ecosystem dedicated to the growth of startups in Quebec, the École de technologie supérieure (ÉTS) said in a news release. The ÉTS is overseeing the development of the Ax-C hub and will be responsible for property management once it opens. Ax-C's new "building partners" will gain privileged access to emerging innovations and benefit from a dedicated research and innovation office in the hub. Ax-C, an initiative born from the 2022-2027 Quebec Research and Innovation Investment Strategy, also benefits from different levels of government investments totalling $48 million, including from the Quebec Ministry of Economy, Innovation and Energy, Canada Economic Development for Quebec Regions, and the City of Montreal. Located on the former trading floor of the Montreal Stock Exchange at Place Victoria in the heart of the city's business district, Ax-C aims to create a vibrant space where the province's tech entrepreneurs can collaborate to ensure the growth and success of local startups. École de technologie supérieure

Toronto-based MaRS Discovery District laid off 11 employees and is revamping its advisory model, with eight salaried advisors transitioning from employees to contractors. The moves are part of a new business strategy under CEO Alison Nankivell. MaRS laid off 20 employees in June this year, primarily at the leadership level. The changes reduce MaRS’ headcount to 101 employees. Nankivell plans to reduce reliance on government funding, which currently makes up two-thirds of the Discovery District’s revenue. Recent layoffs and realignment aim to save over $5 million, targeting $22 million in annual expenses. MaRS is also exploring international partnerships as a new revenue stream, with ongoing collaborations, like the cooperative incubator with Innovate UK, fostering connections between U.K. and Canadian startups. Samfiru Tumarkin LLP

Calgary-based atVenu raised $179 million in an equity investment from Sixth Street Growth, setting the stage for atVenue’s further expansion into live market events. Founded in 2012 by Derek Ball, Ben Brannen and James Seigel, atVenu offers a specialized platform for live events, serving major touring artists, merchandisers, record labels, venue operators, festival promoters and food and beverage providers. atVenu’s platform offers inventory management, forecasting and financial settlements, with an integrated point-of-sale system. atVenu said the new partnership with Sixth Street is set to boost atVenu’s growth into sports and food and beverage markets while strengthening its position as a leader in music merchandise. Calgary.Tech

Palo Alto, Calif.-based Glooko, which offers a digital diabetes management platform, raised US$100 million in a Series F financing round led by Toronto-based Georgian venture capital firm and included backing from Health Catalyst Capital and Canaan. Glooko said the funding will support its continued growth and product expansion in expert data insights, device integrations, clinical research and chronic condition support for health care providers around the world. Glooko also announced it appointed Mike Alvarez as the company’s new CEO. Alvarez was previously the CEO of Qardio, a maker of remote monitoring devices such as thermometers and blood pressure cuffs. Glooko

Montreal-based venture studio Diagram Ventures raised $80 million for its fourth fund, Diagram Climate Tech Fund. The funding round included Diagram’s parent company Sagard, Investissement Québec, BDC Capital, and Teralys Capital, among others. Diagram is focused on building capital-lean digital solutions in the climate space across all climate categories, ranging from electric vehicles and biodiversity to food and agriculture and climate software. TechCrunch 

San Francisco-based data-security company Relyance raised US$32 million in a Series B funding round led by Toronto-based Thomvest, with participation from M12 (Microsoft’s venture fund), Cheyenne Ventures, Menlo Ventures, and Unusual Ventures. The new funds will be put toward growing Relyance’s team to 90 employees by the end of the year, the company said. Relyance offers a platform that scans an organization’s data sources to check if data usage is aligned with governance policies.  TechCrunch

San Francisco-based business intelligence startup Lightdash, which creates tools to help businesses understand and organize their data, raised US$11 million in a Series A funding round led by venture capital firm Accel. Shopify Ventures is a new investor, as is Operator Partners, joining existing backers Y Combinator and Moonfire. Angel investors joined the round, including Shuo Wang (co-founder @ Deel), Michael Grinich (CEO @ WorkOS), and more. Lightdash said it is growing its team, hiring for roles in the U.S. and Europe across engineering, marketing, analytics engineering and sales. Lightdash

Toronto-based artificial intelligence startup Moselle raised $2.1 million in seed funding to make automated inventory management accessible for all brands. The all-equity round was led by venture capital firms AQC Capital and MaRS Investment Accelerator Fund, with participation from True, Rebellion Ventures, Highline Beta, Top Knot Ventures, and Singh Capital. Moselle said it has launched a new automated inventory forecasting, production planning and purchasing suite that empowers customers to manage inventory more efficiently. Moselle

Saskatoon-based Rivercity Innovations (RCI), an Internet of Things startup, raised $2 million to expand its cold chain monitoring solutions globally. The funding round was led by StepChange Capital, with participation from Startup TNT, WestCap’s Golden Opportunities Fund, WTC Ventures, and Wieger Holdings. RCI’s technology helps restaurants, stores and pharmacies in Europe and the Gulf region, like Dubai and Saudi Arabia, prevent food spoilage by automating temperature tracking. RCI uses long-range radio technology to monitor temperature, moisture and humidity over vast distances with minimal power usage. This enables businesses to digitize cold chain data, streamlining compliance and providing early warnings of temperature fluctuations. The funds will be used to expand RCI’s sales team and further its growth in Europe and the Gulf region. Founders Today

Toronto-based Unified.to raised $1.1 million in pre-seed funding for its software product that connects developers with the application programming interfaces needed for AI chatbots, automation and predictive analytics. The funding round was led by LOI Venture and Developer Capital, with participation from Techstars, Alumni Ventures, and a dozen key technology angel investors. Unifed.to said it will use the new capital to enhance its platform, scale its team and fuel the next generation of AI-driven software. Unified.to

Toronto-based BlueCat Networks, which provides network infrastructure management, automation and security solutions, agreed to acquire San Francisco-based LiveAction, Inc., a global provider of network observability and intelligence solutions, from software investor Insight Partners. Financial terms weren't disclosed. Insight Partners remains a minority investor and continues to support the combined company’s growth. Adding LiveAction’s industry-leading network performance monitoring, packet capture and forensics offerings considerably strengthens BlueCat’s network infrastructure management solutions, BlueCat said. BlueCat

British-Australian mining company Rito Tino announced a US$6.7-billion, all-cash share purchase transaction to acquire Ireland-based Arcadium Lithium, one of the world’s largest lithium producers, by mid-2025. Lithium is a key component of electric vehicle batteries. Rio Tinto’s purchase will add lithium operations to its existing aluminum and copper mines. Arcadium has leading capabilities in lithium chemicals manufacturing and extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction. Arcadium’s current annual lithium production capacity across a range of products, including lithium hydroxide and lithium carbonate, is 75,000 tonnes lithium carbonate equivalent. In Canada, Arcadium runs Quebec’s Nemaska Lithium project and has also indicated its interest in expanding in Ontario. The company previously secured a $222-million subsidy deal with the Canadian government to produce lithium, titanium and scandium. Rio Tinto

Canadian Natural Resources Limited has agreed to buy Chevron Canada Limited’s Alberta assets, including Chevron’s 20-percent interest in the Athabasca Oil Sands Project (AOSP). The project includes 20 percent of the Muskeg River and Jackpine oilsands mines, the Scotford Upgrader and the Quest Carbon Capture and Storage facility. This acquisition brings Canadian Natural’s total current working interest in AOSP to 90 per cent. The transaction adds approximately 62,500 barrels of synthetic crude oil per day to the company's production. The agreement also includes the acquisition of additional various working interests in a number of other non-producing oilsands leases with aggregate acreage of approximately 267,000 gross acres. Canadian Natural also agreed to acquire Chevron’s 70-percent operated working interest of light crude oil and liquids rich assets in the Duvernay play in Alberta. Canadian Natural said it has secured a $4-billion loan facility to finance the acquisition and currently holds about $6.2 billion in liquidity, including cash. Canadian Natural Resources

Stewart Wilkinson, a British electric boat entrepreneur, has won approval from the Superior Court of Quebec to purchase Montreal’s Taiga Motors Corp., a maker of electric off-road vehicles, out of bankruptcy. Wilkinson’s family office is behind a group of marine electrification brands including Vita, Envoy and Aqua superPower. Financial terms of the transaction are confidential, Taiga said. However, the company said the buyer has agreed to provide working capital funding for Taiga’s business plan, as well as assume and guarantee Taiga’s debt to Export Development Canada, the Montreal-based manufacturer’s most senior secured lender. Taiga is one of Quebec’s homegrown hopefuls for the electric vehicle age, but it struggled to scale up production, experiencing numerous challenges including what it has said was a failure by certain suppliers to deliver on contracts. Taiga collectively owed $34 million to Investissement Québec, Export Development Canada and the Economic Development Agency of Canada. The Globe and Mail

 REPORTS & POLICIES

Natural Products Canada showcases game-changing bio-based innovators

Natural Products Canada (NPC), which supports bio-based innovation in Canada, released its 2024 Game Changers report.

The report showcases more than 80 innovative NPC-supported organizations nationally that are helping to anchor Canada’s position in the $4-trillion dollar bioeconomy. 

NPC said these innovators have developed game-changing solutions to key global issues, such as better nutrition or more sustainable plastics, and have benefited from NPC’s combination of advice, connections and smart capital.

With NPC’s support, the companies have generated $282 million in revenue and over 400 new jobs, while attracting $479 million in additional capital.

The report also features eight new startups to NPC’s capital recipient roster, including: Enhanced Medical Nutrition (Toronto), HighPoint Agro Bedding (Guelph, Ont.), Lux Bio (Vancouver), MHCombiotic (Calgary), Papillex (Oakville, Ont.), Plantae Environmental Inc. (Sturgeon County, Alta.), Skaldyr (Sydney, N.S.) and Terra Bioindustries (Toronto).

NPC said these newcomers bring fresh innovation to critical areas such as agriculture, manufacturing and cleantech and join a prestigious group of companies that NPC has supported with smart capital, fostering growth and innovation in various sectors.

“The need for sustainable, natural solutions to drive economic prosperity has never been more critical, and Canada is uniquely poised to play a powerful role both domestically and internationally,” Shelley King, CEO at Natural Products Canada, said in a statement.

The companies and academic researchers profiled in the report are making substantial impacts across key industries, including agriculture, fisheries, forestry, mining, automotive, aviation and construction, and more.

NPC acts like a strategic angel investor, providing in-depth advice and a suite of commercialization programs to develop and de-risk Canadian early-stage companies and research institutes.

NPC also provides connections and innovation scouting services to corporations and investors, and leverages an investment fund (Nàdarra Ventures) to bolster the full growth potential of promising Canadian opportunities.

NPC receives funding and other support from the federal Strategic Innovation Fund and the Networks of Centres of Excellence. NPC

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Federal increase in capital gains tax could generate much less revenue than Ottawa predicts: C. D. Howe Institute analysis

The federal government’s increase in the capital gains tax rate could take in much less revenue than Ottawa predicted, according to a new analysis by the C. D. Howe Institute.

Federal Budget 2024 projected that Ottawa would take in an extra $8.8 billion in personal income taxes over five years as a result of the capital gains tax increase. But the C. D. Howe Institute’s analysis found the amount could be more than $5 billion less than that – or $3.3 billion over five years.

In Uncertain Returns: The Impact of the Capital Gains Hike on Ottawa’s Personal Income Tax Revenue, report authors Alexandre Laurin and Nicholas Dahir estimate how much more personal income tax (PIT) revenue the new tax changes will generate. Laurin is director of research at the C. D. Howe Institute, and Dahir is a research officer at the Institute.

They find that the alternative minimum tax (AMT) will interact with the capital gains tax, resulting in minimal additional PIT revenue from large capital gains beyond what the recently reformed AMT – with its 100-percent inclusion rate – would have collected.

Budget 2024 proposed a hike in the capital gains inclusion rate from 50 percent to 67 percent on amounts over $250,000.

Most of the revenue gains from the tax increase on personal capital gains over $250,000 are offset by a corresponding reduction in alternative minimum tax revenues, Laurin and Dahir’s analysis notes.

Their estimate of $3.3 billion over five years from the additional capital gains tax is much lower than the federal budget’s $8.8-billion projection, and also lower than the Parliamentary Budget Officer’s $5-billion to $8-billion estimate. 

“We’re not trying to discredit Finance Canada’s model or the budget officer’s model,” Laurin said in a statement. “These three very different estimates underline the complexity of projecting revenue gains from these tax changes and emphasize the projections’ dependence on crucial yet uncertain assumptions.” 

Alongside model differences, the projected PIT revenue from higher capital gains tax inclusion rates depends on key assumptions about the cyclical nature of capital gains realizations and the adjustments firms and individuals may make in response to the tax change, the authors said.

Capital owners often delay selling appreciated assets to defer tax liability, a behaviour known as the lock-in effect, which impedes efficient capital allocation in the economy, their analysis says. “Increasing the inclusion rate amplifies this effect by further discouraging investors from realizing gains.”

Additionally, capital gains taxes deter entrepreneurial activity and risk-taking by reducing the after-tax return on equity-financed investments, according to their analysis. “This impact is compounded by the fact that capital losses can only offset capital gains, limiting their utility.”

In addition to their estimate of $3.3 billion, Laurin and Dahir also find that the bulk of the new PIT revenue will come from the owners of Canadian-Controlled Private Corporations (CCPCs).

Ranging from doctors and lawyers to entrepreneurs and large-scale operators, owners of CCPCs will face a higher inclusion rate on capital gains earned within their corporations and will see a corresponding reduction in the amount of capital gains they can pay out as tax-free capital dividends.

Laurin and Dahir did not model how corporate income taxes will be affected, but they said Ottawa’s estimate of $10.6 billion in additional corporate income tax as a result of the taxation changes appears plausible when considering historical data on capital gains earned by corporations, especially CCPCs. C. D. Howe Institute

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Share of Canadian assets owned by foreign-controlled companies has steadily declined: Statistics Canada report

The share of Canadian assets owned by foreign-controlled enterprises has steadily declined since 2007, according to a Statistics Canada report.

This trend continued in 2022, with the foreign-controlled share of assets decreasing by 0.2 percentage points from a year earlier. The decline was mostly due to Canadian-controlled enterprise assets growing at a faster pace than those for foreign-controlled enterprises.

Data from the Corporations Returns Act program show that enterprises in Canada are controlled by entities from more than 90 countries. However, in 2022, eight countries accounted for 87 percent of these foreign-owned assets.

Enterprises controlled from the United States maintained the largest overall share of foreign-controlled assets in Canada (52.3 percent), followed by the United Kingdom (11.1 percent) and Japan (seven percent).

By macro-region, the majority share of assets under foreign control in 2022 belonged to enterprises from the Americas (54.1 percent), followed by enterprises from Europe (29.4 percent) and Asia (14.8 percent).

Enterprises controlled from the Americas experienced a slowdown in asset growth, from 10.6 percent in 2021 to half that amount in 2022 (5.3 percent).

Asset growth by European-controlled enterprises in 2022 (4.2 percent) rose at the fastest pace since 2018.

Asian-controlled enterprise asset growth rose from 4.4 percent in 2021 to 6.5 percent in 2022.

Among non-financial industries, wholesale trade (47.4 percent), manufacturing (44.1 percent), oil and gas extraction (36.5 percent), and mining and quarrying (30.3 percent) had the largest shares of foreign control in 2022, as measured by assets.

Combined, foreign- and Canadian-controlled enterprises operating in Canada held $17 trillion in assets in 2022.

Canadian-controlled assets were valued at $14.5 trillion, while foreign-controlled assets were valued at $2.5 trillion. This results in a higher share of assets owned by Canadian-controlled corporations (85.3 percent) compared with foreign-controlled corporations (14.7 percent).

Canadian-controlled corporations also reported a higher year-over-year increase in asset growth from 2021 to 2022 (seven percent) compared with foreign-controlled corporations (5.3 percent). StatsCan

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Underutilization of immigrant talent worsens labour shortages, costs Canada’s economy billions and dampens national prosperity

Several major challenges are causing the underutilization of immigrant talent in Canada, according to a new report by the Institute for Canadian Citizenship and Deloitte Canada.

 This underutilization exacerbates labour shortages, especially in critical fields like construction, health care and cybersecurity, costing the Canadian economy billions annually and hindering national prosperity, says the report, Talent to win: Employer perspectives on immigrant unemployment and the immense upside of solving it.

The Institute for Canadian Citizenship (ICC) and Deloitte engaged business, government and civil society leaders in a series of roundtables across Canada to explore the economic imperative to address this issue, the barriers faced and the strategies to overcome them.

Discussions revealed several challenges beyond systemic discrimination, including: lack of ambition in business culture; inadequate onboarding and mentoring practices; gaps in diversity/equality/inclusion frameworks; and a lack of support to navigate the complex immigration system – especially for small and medium enterprises.

Canada will confer permanent residency status to 1.5 million people over the next three years, according to the report.

Roughly 60 percent will be “economic class immigrants,” selected for their predicted ability to integrate into the workforce. This policy aims to address talent shortages in critical sectors, compensate for low birthrates and build robust economic supports for an aging population.

Yet current labour market conditions suggest that the skills of immigrants who are already in Canada are vastly underutilized, the report says.

Research from Deloitte estimates that labour shortages reduced Canada’s GDP potential by $54 billion in 2022 and predicts these shortages, and their associated economic drag, will persist until Canada’s existing human talent is more effectively utilized, according to the report.

“So, while increased population is currently being blamed for declining productivity and unattainable housing prices, the labour market, and therefore the economy, still need more people.”

Despite gradual gains between 2010 and 2023, immigrants continue to face higher unemployment rates and also tend to be underemployed, earning some 10 percent less than their Canadian-born counterparts, the report notes.

An ICC survey of roughly 2,000 new Canadians revealed that 30 percent of immigrants under 35 are likely to leave the country within two years. Frustration with underemployment was the most common reason.

The new report found the top 10 challenges resulting in underutilized immigration talent were:

• Canada’s economic culture lacks ambition. Leaders were frustrated that even their own firms were unwilling to invest in building globally diverse teams, “placing this intransigence within a broader pattern of low innovation, evidenced by anemic business investment, innovation-killing oligopolies, and a health care system that still communicates by fax.”
• Poor onboarding, training and mentoring. A senior corporate leader from Western Canada lamented that “companies are just not willing to invest in this anymore.”
• Diversity, Equity and Inclusion (DEI) gaps. Immigrant hiring slips through the cracks because country of origin or immigration background are not commonly considered within DEI frameworks, which tend to prioritize gender identity, sexual orientation and racialized people or groups.
• Experience and skill “translation.” Many participating employers say they struggle to “translate” skills and experiences from other countries into Canadian equivalents they understand.
• Applying lessons learned across large organizations. Executives at larger firms expressed considerable frustration about their failures to change hiring practices many layers and divisions away.
• Cultural disconnects. Though Canada’s big cities have given the country a reputation as an immigrant society, many parts of the country, like Atlantic Canada, are still getting used to the arrival of highly skilled immigrant professionals. Cultural fit within teams was deemed to be particularly challenging in these places.
• A narrow definition of who counts as an immigrant. Programs that focus on international recruitment exclude immigrants who already live in Canada but may not have been able to find work commensurate with their talent, or who may currently reside in another province or region.
• Administration and regulatory compliance. Many participants emphasized the challenge of internal administration and regulatory compliance. SMEs – which represent most businesses in Canada – have limited human resources capacity and often lack the knowledge and resources to hire internationally or navigate the work permit process for non-permanent immigrants already in Canada.
• Immigrant selection policy. Many participants observed a mismatch between the skills federal and provincial governments privilege when selecting permanent residents and those the economy needs most. Several participants took issue with prioritizing entry for people with more advanced degrees while devaluing blue collar experience that is not just badly needed, but also highly remunerative.
• Lack of employer supports. Very few participants had experience interacting or partnering with traditional settlement services, which are the main pathway through which the federal government finances supports for permanent residents, refugees, and asylum seekers. Agencies were unable to provide employers with the support and training they sought to become better at identifying and onboarding immigrant talent.

            “Despite these significant challenges, participating employers found great success in expanding the number of immigrants on their teams – at all skill levels,” the report says. Participants shared several promising practices, including:

• Building buy-in. Companies that successfully recruited immigrants were also most convinced of the benefits of doing so, and they worked hard to generate widespread buy-in for this strategy. Tactics included conducting internal research proving the superior performance of teams featuring recent immigrants, consistently sharing and celebrating successes, and trusting newcomers with positions of leadership to demonstrate their suitability for high-skill roles.
• Cluster hiring. Many employers use cluster hiring to diversify their workforces. These cohorts help employees build confidence and networks and create efficient conditions for training, development and the provision of targeted supports.
• Employer supports. Employers repeatedly asked for more supports around immigrant hiring. Some industry associations and chambers of commerce have also begun to support employers with training on international recruitment and expert advice about navigating the immigration system.
• Immigration centres of excellence. One large financial services provider has created a dedicated centre of excellence for immigrant hiring, retention and success. This team includes human resources leaders, business leaders, immigration lawyers and an employee support group.
• From credentials to skills. An ongoing shift from credentials-based hiring to skills-based hiring has benefitted newcomers in job applications. Skills-based hiring levels the playing field somewhat, by reducing emphasis on educational attainment and prior workplaces.
• A holistic, full-family approach. Some employers are training hiring managers to actively support newcomer employees’ holistic wellbeing, including the wellbeing of their families. Others have forged relationships with civil society organizations like the YMCA to ensure newcomer employees can access recreation and support services that improve retention.

Employers looking to improve performance and acquire competitive advantages would do well to invest in the know-how and infrastructure for recruiting and integrating immigrant talent, the report says.

“While racism and discrimination will not vanish, employers participating in this research have shown that many of the key challenges to immigrant labour force integration are indeed soluble.” Institute for Canadian Citizenship

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Canada should do more to leverage the economic potential of international students, University of Waterloo researchers say

The average post-graduation earnings of the University of Waterloo’s international students exceed Canadian-born graduates of UWaterloo, as well as Canadian-born university graduates nationally, according to a study by UWaterloo researchers.

Also, the earnings advantage of UWaterloo’s international student graduates has increased over time as the economic returns to degrees in technology and engineering – where UWaterloo’s foreign students are heavily concentrated – have increased relatively more.

The study, part of the Canadian Labour Economics Forum’s working paper series, is by UWaterloo researchers Jel Blit, Mikal Skuterud and Ruiwen Zhang – all in UWaterloo’s Department of Economics.

The study, which compared students graduating at the same time from the same academic programs with similar academic standing, found evidence of disparities in international students’ average earnings after graduation.

The earnings gaps are largest for East Asian, especially Chinese-born graduates. They are also concentrated among academically weaker students and appear to be entirely explained by deficiencies in English language proficiency.

“The results provide no evidence consistent with the common belief that immigrants’ skills are underutilized in the Canadian economy. In fact, we find that measured skills are more important in determining the labour market earnings of foreign-born than Canadian-born graduates.”

About 70 percent of UWaterloo’s international students transition to Canadian permanent residency, or twice the rate of international students at the national level, the study says.

There is little difference in the transition rates of UWaterloo’s students with the highest and lowest academic achievement, and little evidence that policy efforts since 2008 to ease foreign students’ permanent residency transitions has impacted UWaterloo graduates – unlike at the national level.

“This suggests these policies have primarily affected the immigration outcomes of lower- quality graduates, including community college graduates,” the study says.

Canadian-born students in the 95^th percentile of the skill distribution leave Canada after graduation at twice the rate of Canadian-born students in the 5^th percentile, according to the study.

While the best international students are twice as likely to out-migrate as the best Canadian-born graduates, there were five times more Canadian-born graduates of UWaterloo between 2005 and 2021 than international graduates.

“This implies that Canadian students have contributed more in absolute numbers to  the 'brain drain' in recent years than international students at UWaterloo,” the study says.

The study’s authors say their analysis points to the potential of Canada’s International Student Strategy to boost economic growth.

However, given the extent to which student outcomes vary by program of study and institution, realizing this potential requires prioritizing quality over quantity in foreign student admissions, they say. “Unfortunately, the Strategy has become preoccupied with growth, especially in the college sector.”

The authors recommend that Immigration, Refugees and Citizenship Canada needs to offer international students a single transparent pathway to economic-class immigration that relies exclusively on an enhanced Comprehensive Ranking System (CRS), to select candidates with the highest expected future Canadian earnings.

The success of the CRS in predicting immigrants’ future Canadian earnings can be enhanced significantly by adding applicants’ fields of study, school identities and post-graduation Canadian earnings to the set of criteria used, the study says.

Second, Canada can do more to influence the choices that the world’s best and brightest students make about where to study and settle after graduation, the authors say.

They suggest using targeted tuition subsidies to attract exceptional prospective foreign students to the country’s top university programs in technology and engineering, and income tax schemes to incentivize the highest quality graduates to work in Canada after graduation.

Canada’s research-intensive universities, like UWaterloo, that offer students Canadian work opportunities through their cooperative education programs, have the potential to attract top global talent, the authors say.

“While we hear much government rhetoric about attracting top global talent, we see little to no concerted policy efforts to move the dial on this margin. If the government is serious about leveraging the economic potential of international students, it is time they focus on students in top programs at top universities that embody the human capital that will drive economic growth.” University of Waterloo

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Federal restrictions on post-graduation work permits impact numerous college programs and will hurt local communities, colleges say

The federal government’s new restrictions on post-graduation work permit eligibility means some key areas of college programming that attract significant numbers of international students will no long be eligible, say college representatives.

Programs that will no longer be eligible, based on the government’s list of eligible programs, include tourism, hospitality and business programs of any kind, they said.

Karen Dancy, director, recruitment and international at Olds College in Alberta, said: “"Notably absent on the list is hospitality. This will be catastrophic for local communities, including rural and remote areas, that rely on our college-educated international learners."

In an open letter to Marc Miller, minister of Immigration, Refugees and Citizenship Canada (IRCC), on September 27, Marketa Evans, president and CEO of Colleges Ontario, said: "I write to express our strong objection to the federal government’s decision to end automatic work permits for international students attending Ontario’s public colleges.”

"We are very concerned about the lack of consultation with provinces and the use of national labour market information to inform what local employers need. We urge the federal government to work collaboratively with the province to ensure that the needs of Ontarians are taken into consideration under this new work permit system,” Evans said.

The government’s list of 966 academic programs eligible for post-graduate work permits falls into five broad areas: agriculture and agri-food; health care; science, technology, engineering and mathematics; skilled trade; and transportation.

IRCC has previously said that the list would be based on areas of long-term labour shortages in the Canadian economy, using the same criteria as those used in the government’s Express Entry's category-based selection process.

But many stakeholders have called that process into question, especially with respect to its ability to recognize or adapt to regional or local labour market needs.

"The reforms single out public colleges to prove their programs align with national labour market needs – determined by Ottawa – in order to be considered an eligible field of study for a post-graduate work permit,” Pari Johnston, president and CEO of Colleges and Institutes Canada, said in a statement.

New eligibility restrictions also make a false distinction between the quality and relevance of college and university bachelor’s degrees approved by their provinces, she said.

“Ottawa’s decision to align programs with national needs creates a fundamental disconnect between the pressing needs of local labour markets and the essential contributions of skilled international graduates from the over 10,000 diploma and bachelor’s degree programs in high demand fields across our network. We believe this disconnect needs to be addressed with urgency,” Johnston said.

Dr. Dennis Johnson, previously the president of the College of New Caledonia and now a consultant in the sector, said on LinkedIn that the recent policy changes announced by IRCC “mark a pivotal shift for Canada’s International Student Program, drastically reducing what was once a financial lifeline for many institutions.”

“The future of the post-secondary education system is at risk, and without coordinated action, both the viability of institutions and opportunities for future learners are in question,” Johnson said.

Meanwhile, Fanshawe College in London, Ont. is cutting costs and looking to review its financial operations, CBC News reported.

Peter Devlin, president of Fanshawe, said the federal government’s changes to international student enrolment have hurt the college’s budget and led to cuts in a variety of areas, including professional development and new hires. ICEF Monitor

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Ottawa announces plan to deliver sustainable investment guidelines and mandatory climate-related financial disclosures

Finance Minister Chrystia Freeland announced a plan to deliver made-in-Canada voluntary sustainable investment guidelines and mandatory climate-related financial disclosures for large, federally incorporated private companies.

The investment guidelines, or Canadian taxonomy, would establish a “transition” category to identify, and boost funding for, scientifically credible pathways to rapidly decarbonize Canada’s emissions-intensive sectors.

However, Freeland didn’t announce any funding to deliver on the commitments, including the cost of a third-party organization to develop and govern the Canadian taxonomy.

The federal government said achieving Canada’s goal of net-zero emissions by 2050 will require between $125 billion and $140 billion in investment into Canada every year.

The new sustainable investment guidelines will become an important, voluntary tool for investors, lenders and other stakeholders navigating the global race to net-zero emissions by credibly identifying “green” and “transition” economic activities, Ottawa said.

“These guidelines will provide the certainty needed to accelerate the flow of private capital into sustainable activities across the Canadian economy.”

From building electric vehicle batteries to generating clean energy and decarbonizing emissions-intensive heavy industries, these guidelines will identify job-creating activities in a way that is scientifically credible and aligned with limiting global temperature rise to 1.5°C above pre-industrial levels, the government said.

The Canadian taxonomy will be developed and governed by an external, third-party organization(s).

The government said taxonomies for two or three priority sectors will be released within a year of the arms-length organization beginning its work.

Development of the metrics-based Canadian taxonomy would first focus on these sectors: electricity, transportation, buildings, agriculture and forestry, manufacturing, and extractives including mineral extraction and processing and natural gas.

To attract more private capital into Canada’s largest corporations and ensure Canadian businesses can continue to effectively compete as the world races towards net zero, the government is also moving forward with mandating climate-related financial disclosures for large, federally incorporated private companies.

These disclosures will help investors better understand how large businesses are thinking about and managing risks related to climate change, ensuring that capital allocation aligns with the realities of a net-zero economy.

Specifically, the government intends to bring forward amendments to the Canada Business Corporations Act that will require these disclosures.

The government will launch a regulatory process to determine the substance of these disclosure requirements and the size of private federal corporations that would be subject to them.

As small and medium-sized businesses will not be subject to the requirements, the government is considering ways to encourage those businesses to voluntarily release climate disclosures.

Ottawa said it is ready to work with provincial and territorial partners to ensure broad disclosure coverage across the Canadian economy.

The government will seek to harmonize its regulations with those that will be required from public companies by securities regulators. More details will be released in due course.

Two years ago, the Sustainable Finance Action Council (SFAC) submitted its recommendations to the government on what Canada’s green taxonomy should look like.

During that time, Canada has fallen behind other regions, including Australia, which has used the first phase of the Canadian taxonomy as a guide for a framing document for Australia’s taxonomy. Australia also announced in May its support, as well as funding, for the next stage, which includes screening criteria for three of the priority industrial sectors.

In addition to announcing the Canadian taxonomy plan, the federal government successfully reopened its second Canadian-dollar-denominated green bond, following its initial issuance in February 2024. This $2-billion reopening of a 10-year bond is part of a commitment to regular green bond issuances.

This second offering saw demand from environmentally and socially responsible investors who represented a majority of buyers (53 percent). The final order book stood at more than $3.8 billion, Ottawa said.

This offering is the second under Canada’s updated Green Bond Framework, which allows for certain nuclear energy expenditures to be eligible for green bond proceeds. Canada is the first sovereign borrower to issue a green bond including certain nuclear expenditures, which the government said demonstrates Canada’s commitment to being a global leader in clean nuclear power.

The government said it intends to proceed with two smaller green bond transactions in fiscal year 2024-25 – the announced reopening and a separate offering at a later date – to meet the planned issuance outlined in Budget 2024. Finance Canada

THE GRAPEVINE – News about people, institutions and communities

This year's Nobel Prize Chemistry was awarded to David Baker at the University of Washington, Seattle, and Demis Hassabis and John M. Jumper, both at Google Deepmind in London, U.K. Baker was recognized for his work in computational protein design, including building entirely new kinds of proteins. Hassabis and Jumper were recognized for their AI model called AlphaFold 2, with which they’ve been able to predict the structure of virtually all the 200 million proteins that researchers have identified. Proteins control and drive all the chemi­cal reactions that together are the basis of life. Proteins also function as hormones, signal substances, antibodies and the building blocks of different tissues. The Royal Swedish Academy said DeepMind’s breakthrough will allow scientists to better understand bodies, diseases and materials, while Baker’s work could lead to new chemicals and drugs. Royal Swedish Academy of Sciences

The Ontario Securities Commission (OSC) appointed Bonnie Lysyk as executive vice-president, enforcement and Josée Turcotte as chief operating officer and chief of staff. Both individuals will report to OSC CEO Grant Vingoe. Lysyk will be responsible for delivering the regulatory deterrent for capital markets misconduct. Prior to serving as the auditor general of Ontario, she served as the provincial auditor of Saskatchewan and as the deputy auditor general and chief operating officer in Manitoba. Turcotte will be responsible for managing and directing the business operations of the OSC. Most recently, she was executive director, emerging risk operations directorate, at the Office of the Superintendent of Financial Institutions. OSC

Toronto-based Cannacord appointed Nadine Ahn as deputy chief financial officer of Canaccord Genuity Group Inc. Ahn, with over 25 years of banking experience and deep expertise in treasury, capital markets, corporate development and strategy, will play a key leadership role at the company, Cannacord said. Current CFO Don MacFayden plans to transition from his role in the coming year, after three decades of service to the company. Canaccord’s appointment of Ahn comes after she was terminated by Royal Bank of Canada in April for allegedly having an undisclosed personal relationship with colleague Ken Mason. Ahn subsequently sued RBC for nearly $50 million in August, claiming she was wrongfully terminated, according to a lawsuit filed in Ontario’s Superior Court. Canaccord Genuity Group Inc.

Scotiabank appointed Terri-Lee Weeks as president and CEO of Scotiabank’s digital bank Tangerine, effective November 1, 2024. Gillian Riley, current Tangerine president and CEO, is retiring after a 31-year career with Scotiabank. She will stay on as strategic advisor until December 31, 2024 and as chair of the board of Roynat Capital.  Weeks joined Scotiabank in September 2021 as executive vice president, retail customer – a role in which she has successfully built client value and deepened client loyalty with retail products that drive exceptional client experience across the bank, Scotiabank said. Scotiabank

Sweden’s Northvolt announced that Mark Duchesne, the Canadian-born executive running Northvolt 's main lithium-ion battery manufacturing plant in Sweden, has stepped down. The move comes shortly after the cash-strapped company announced plans to reduce its workforce by about 25 percent, or 1,600 jobs, in Sweden as part of a major cost-cutting drive. Northvolt also is suspending plans for a sizeable expansion of Northvolt Ett. Duchesne, CEO of Northvolt Ett, will be replaced on an interim basis by Angéline J. Bilodeau, the firm’s vice-president of operations in North America, the company said. The position will be held until the end of the year as the company seeks to secure a permanent replacement for CEO of Northvolt Ett. CNBC

The Transition Accelerator announced a new advisory panel to guide its Electrifying Canada initiative, which works with a broad array of companies and individuals across the electricity value chain, creating connections and developing pathways to the future electricity system Canada needs to power its net-zero economy. Chaired by Bob Elton, former CEO of BC Hydro and current chair of RB Global, the advisory panel will help shape Electrifying Canada’s strategic initiatives by offering expert advice, ensuring effective and timely action to help build the grid of the future. The advisory panel consists of: 

• Bob Elton (chair), chair at RB Global.  
• Claudine Bouchard, executive vice-president and chief operating and infrastructure officer, Hydro‑Québec.  
• Francis Bradley, president and CEO, Electricity Canada.  
• Philippe Dunsky, founder and president, Dunsky Energy + Climate.  
• Tim Eckel, energy transition and asset management consultant.
• Wendy Franks, CEO, Canadian Power-to-X Partners.  
• Lesley Gallinger, president and CEO, Independent Electric System Operator (Ontario).
• Bruce Lourie, president, Ivey Foundation.  
• Emily Whetung-MacInnes, director, Indigenous Partnerships, Ontario Power Generation. Transition Accelerator

The College of the North Atlantic (CNA) in Stephenville, Nfld., received $10 million from ExxonMobil Canada Properties, operator of the Hebron offshore oilfield project, and the Hebron co-venturers to expand the college’s climate change and sustainability programming. This funding – the largest donation in CNAS’s history – will be distributed over five years to support scientific research, foster interdisciplinary collaboration, enhance infrastructure, transform resources and provide a focal point for sustainability education. “This donation will help prepare our workers for the careers of the future and ensure that Newfoundland and Labrador remains at the forefront of the green economy,” said CNA president Elizabeth Kidd. CNA

The University of British Columbia (UBC) received a $7-million donation from the Dan On Foundation to fund construction of UBC’s Food and Beverage Innovation Centre (FBIC), which will open in 2025. FBIC will support B.C.’s agri-food industry with state-of-the-art technologies and facilities, including a high-pressure processing lab, microwave-vacuum dehydration, supercritical fluid extraction and fermentation capabilities, a food packaging lab and three innovation bays. It will foster research partnerships with industry, growers and government that explore innovative methods for preserving food, reducing waste and upcycling byproducts into new products such as sustainable packaging materials. The centre will be named the Dan On Food and Beverage Innovation Centre in recognition of this donation. The centre will be led by Dr. Anubhav Pratap-Singh in the Faculty of Land and Food Systems, whose lab has previously developed innovative products like dietary fibre fat-replacers, oral-insulin tablets, biodegradable food packaging made from blueberry pomace, and upcycled brewery grains into high-fibre chips and tastier plant-based proteins. UBC

The University of Saskatchewan (USask) received a $3-million donation from alumni Dr. Roman Shklanka, PhD, and Patricia Shklanka to establish the Shklanka Chair in Precambrian Critical Minerals Systems. Housed in the Department of Geological Sciences, this chair will focus on fundamental and applied research in critical mineral systems, including ore-forming processes and metal-mineral associations. Shklanka’s international career as a geologist and mineral explorationist spanned 45 years in the mining industry; he was inducted into the Canadian Mining Hall of Fame in 2009. “The Shklanka Chair will play an important role in mentoring the next generation of USask students who will lead in building the provincial and national workforce in the field of critical minerals systems,” said USask College of Arts and Science Dean Dr. Brooke Milne, PhD. USask

Dalhousie University received a $1.25-million donation from the Garron Foundation to establish the Michael Albert Garron Fund, to  provide scholarships and bursaries to undergraduate and graduate students in ocean sciences, marine biology, oceanography and marine affairs. The donation honours the legacy of Michael Garron, who was passionate about the ocean and marine life and dreamed of becoming a marine biologist. He died from cancer at age 13. “This fund will enable [students] to fully immerse themselves in cutting-edge marine research, shaping their journey from student to scientist,” said Dr. Leslie Phillmore, Dalhousie’s vice-president academic. Dalhousie University

The University of Guelph received a $1-million gift from business leader and philanthropist Martha G. Billes to expand opportunities for future conservation leaders. The donation will be used to enhance U of G’s master of conservation leadership (MCL) program, creating more scholarships and travel grants, launching a leader-in-residence program, and better integrating MCL with other U of G centres of excellence on campus. The gift also will provide 10 travel grants to assist students with attending the field school residency, a hands-on experience in diverse conservation settings across Canada. The gift will allow the program to bring a senior conversation leader to U of G to deliver lectures, mentor students and serve as keynote speaker for an annual conservation speakers’ series. University of Guelph

The University of Saskatchewan unveiled its fleet 15 customized electric Club Cars that will be used by the Facilities team, reducing the dependence on the current fleet of gasoline-powered vehicles. The concept of purchasing electric vehicles came from the Facilities team’s strategic plan, which included a review of the university’s current fleet of vehicles to identify ways to reduce both costs and carbon emissions. After consulting with suppliers and analyzing options, Facilities decided to move forward with the small EVs that were custom designed to meet the university’s specific needs. “The Club Car EVs allow the operators to better navigate the campus and drive directly to where they need to work. They are versatile, easily configurable, reduce our carbon footprint and are cost-effective,” said Tory Linsley, director of Facilities. Currently, Facilities manages a fleet of nearly 100 gasoline- or diesel-powered vehicles, including full-sized vans, small vans, cube trucks, dump trucks, half- and quarter-ton trucks, loaders and skid steers. On average, the fleet uses approximately 5,000 litres of fuel per month. The purchase of 15 new EVs is the beginning of a transition to increased use of electric-powered vehicles.  USask

The Institut national de la recherche scientifique (INRS) launched the Collaboratoire Villes Voix Visions (C3V), a new research laboratory focused on urban inequities. Co-directed by INRS professors Stéphane Guimont Marceau and Nathan McClintock, C3V brings together local partners and students to study urban realities, civic relations and community initiatives that address social disparities. C3V is equipped with an audio recording and production studio, field data collection tools, a workshop dedicated to collaborative activities and a laboratory. “The results of this research will also inform policymakers, who will be able to better understand the lived experiences of urban populations,” McClintock said. The initiative was made possible in part by a Canada Foundation for Innovation grant and funding from the INRS Centre Urbanisation Culture Société. INRS

The University of Winnipeg (UWinnipeg) received approval from the Government of Manitoba to launch its first doctoral program, the PhD in Bioscience and Policy. Unique within western Canada, this program will equip students to apply their original research to public policy. They will learn to apply bioscience research to address societal challenges such as climate change, environmental sustainability and human health. They will also complete courses in science and policy and science communication. Manitoba has a vibrant and growing bioscience industry, with more than 700 companies and organizations generating approximately $10 billion in total sales annually to Manitoba’s GDP. “[W]e are very pleased to launch this cutting-edge doctoral program that will train students to conduct independent research and make science more accessible to policy makers and the public at large.” said Dr. Manish Pandey, acting dean of graduate studies. UWinnipeg

Mount Royal University (MRU) in Calgary has launched a post-bachelor’s certificate in spatial data science designed to help university graduates build their geospatial skills. The Spatial Data Science certificate introduces students to geospatial tools, data and applications, training them to conduct spatial analysis and derive data insights. This course builds on MRU’s recently launched Bachelor of Science - Data Science degree, and aims to provide graduates with the opportunity to develop their geospatial skillset to complement their education. The course draws from geography, computer information systems and mathematics, and includes a focus on machine learning and deep learning. The program takes one year to complete and will be delivered in an in-person format that includes hands-on learning opportunities. The program starts in fall 2025 and has 36 seats available. It will be delivered at MRC with face-to-face classes supported with practical laboratory exercises, field trips, audio-visual presentations and seminars. MRU

The University of Regina (URegina) and Shad Canada have partnered on an initiative that will see top Canadian high school students participating in summer study programs focused on science, technology, engineering,  arts and math (STEAM), along with entrepreneurship and innovation. Through the program, students will connect with mentors, prepare to attend postsecondary education and participate in hands-on learning. URegina will have its first intake of at least 80 students in July 2025. The program will include academic components in STEAM, entrepreneurship and team-based projects, as well as social and recreational components featuring on and off-campus activities that enhance wellness and provide exposure to the geography and culture of the region. The students will also be introduced to local Indigenous communities and traditional knowledge resources. URegina is one of 26 universities across Canada that host Shad students. URegina

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